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Skillists of the silhouette of the offices of the European Central Bank in Frankfurt, Germany, on Monday, November 25, 2024.
Bloomberg | Bloomberg | Ghetto images
Next week, CNBC teams return to the road – and it’s all about banks and ECB. From Frankfurt to Milan and Paris to London, the finances are in focus.
Bank bells
Markets seem to bank the financial sector to maintain the positive momentum of profit during this quarter. Citi described the first quarter as “remarkably sustainable” and now analysts expect Stoxx 600 The growth of the profit per share to achieve positive during the year during this quarter.
Much of this optimism focuses on large banks, while other sectors such as luxury, cars and energy are struck by a decrease in profit.
Unicredit Things begin on Wednesday. The Italian bank giant will try to keep investors focused on numbers, not their M&A ambitions. As it moves around Commerzbank have seen that it increases its share to 20%, Saxo banks analysts emphasize the uncertainty about its potential absorption of Bank BPMOnce an Italian court has blocked this move until additional conditions are met. The action has been over 50% so far this year, providing some fun to CEO Andrea Orsel as he fights to maintain his expansion plans.
French financial BNP Paribas – The largest lender of the euro area by assets – reports profits on Thursday.
In the last quarter, the bank has increased the past expectations managed by the results in its investment bank, but reworked its purpose for profitability a little more.
On the same day, the attention will be addressed to Frankfurt for Deutsche Bank’s Last set of numbers. The German creditor has registered his best profit for 14 years in the last quarter, taking advantage of the increased volume of trade around market instability. CEO Christian Shieing told CNBC in June that he sees Europe’s ability to invest more in his own defense sector as a key area of growth.
The game of waiting
For the macro-observists, the focus of the week in Europe will come from the European Central Bank. President Christine Lagarde and her fellow politicians are expected to maintain 2% rates on Thursday. But there is a big catch …
President Donald Trump’s tariff threats are not expected to derail the result of this meeting, according to Reuters, citing five sources of a member of the ECB Management Council. But if Trump moves forward with a 30% EU import tariffs, there is a broad assumption that the ECB will reduce the percentage in response.
Investors will have to evaluate the impact by September 11, as the ECB is resting for the summer after the meeting this week.
Inflationary
With regard to basic economic conditions, Deutsche Bank warns that European risk of inflation “are still underestimated, with remarkable complacency of key assets,” the impact of tariffs is not yet transferred.
The bank’s macro strategist also told CNBC Squawk Box Europe that the deadline for tariffs on August 1 for negotiations between the US and the EU sets the basis for a late result to cause a “very acute market reaction”.
